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Inventory Furniture and fixtures (net) Total assets Liabilities and Shareholders' Equity Accounts payable (for inventory) Notes payable Interest payable Common stock Retained earnings Total liabilities and shareholders' equity 3. Purchase of inventory on account 4. Cash payment to suppliers 5. Cost of inventory sold 6. Cash paid for operating expenses 7. Cash paid for interest on notes 260,000 175,000 920,000 900,000 610,000 620,000 560,000 280,000 21,600 $ 900,000 Transactions during 2024 (current year) were as follows: 1. Sales to customers on account 2. Cash collected from customers $ 260,000 270,000 10,800 100,000 259, 200 $ 900,000 Additional Information: The notes payable are dated June 30, 2023, and are due on June 30, 2025. Interest at 8% is payable annually on June 30. Depreciation on the furniture and fixtures for 2024 is $32,000. The furniture and fixtures originally cost $420,000. Required: Prepare a classified balance sheet at December 31, 2024, by updating ending balances from 2023 for transactions during 2024 and the additional information. The cost of furniture and fixtures and their accumulated depreciation are shown separately.

Inventory Furniture and fixtures (net) Total assets Liabilities and Shareholders' Equity Accounts payable (for inventory) Notes payable Interest payable Common stock Retained earnings Total liabilities and shareholders' equity 3. Purchase of inventory on account 4. Cash payment to suppliers 5. Cost of inventory sold 6. Cash paid for operating expenses 7. Cash paid for interest on notes 260,000 175,000 920,000 900,000 610,000 620,000 560,000 280,000 21,600 $ 900,000 Transactions during 2024 (current year) were as follows: 1. Sales to customers on account 2. Cash collected from customers $ 260,000 270,000 10,800 100,000 259, 200 $ 900,000 Additional Information: The notes payable are dated June 30, 2023, and are due on June 30, 2025. Interest at 8% is payable annually on June 30. Depreciation on the furniture and fixtures for 2024 is $32,000. The furniture and fixtures originally cost $420,000. Required: Prepare a classified balance sheet at December 31, 2024, by updating ending balances from 2023 for transactions during 2024 and the additional information. The cost of furniture and fixtures and their accumulated depreciation are shown separately.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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KORVER SUPPLY COMPANY Balance Sheet At December 31, 2023 Assets Cash Accounts receivable Inventory Furniture and fixtures (net) Total assets Liabilities and Shareholders' Equity Accounts payable (for inventory) Notes payable Interest payable Common stock Retained earnings Total liabilities and shareholders' equity 3. Purchase of inventory on account 4. Cash payment to suppliers 5. Cost of inventory sold 6. Cash paid for operating expenses 7. Cash paid for interest on notes $ 155,000 310,000 260,000 175,000 $ 920,000 900,000 610,000 620,000 560,000 280,000 21,600 $ 900,000 $ 260,000 270,000 Transactions during 2024 (current year) were as follows: 1. Sales to customers on account 2. Cash collected from customers 10,800 100,000 259, 200 $ 900,000 Additional Information: The notes payable are dated June 30, 2023, and are due on June 30, 2025. Interest at 8% is payable annually on June 30. Depreciation on the furniture and fixtures for 2024 is $32,000. The furniture and fixtures originally cost $420,000. Required: Prepare a classified balance sheet at December 31, 2024, by updating ending balances from 2023 for transactions during 2024 and the additional information. The cost of furniture and fixtures and their accumulated depreciation are shown separately. Note: Amounts to be deducted should be indicated by a minus sign.
Transcribed Image Text:KORVER SUPPLY COMPANY Balance Sheet At December 31, 2023 Assets Cash Accounts receivable Inventory Furniture and fixtures (net) Total assets Liabilities and Shareholders' Equity Accounts payable (for inventory) Notes payable Interest payable Common stock Retained earnings Total liabilities and shareholders' equity 3. Purchase of inventory on account 4. Cash payment to suppliers 5. Cost of inventory sold 6. Cash paid for operating expenses 7. Cash paid for interest on notes $ 155,000 310,000 260,000 175,000 $ 920,000 900,000 610,000 620,000 560,000 280,000 21,600 $ 900,000 $ 260,000 270,000 Transactions during 2024 (current year) were as follows: 1. Sales to customers on account 2. Cash collected from customers 10,800 100,000 259, 200 $ 900,000 Additional Information: The notes payable are dated June 30, 2023, and are due on June 30, 2025. Interest at 8% is payable annually on June 30. Depreciation on the furniture and fixtures for 2024 is $32,000. The furniture and fixtures originally cost $420,000. Required: Prepare a classified balance sheet at December 31, 2024, by updating ending balances from 2023 for transactions during 2024 and the additional information. The cost of furniture and fixtures and their accumulated depreciation are shown separately. Note: Amounts to be deducted should be indicated by a minus sign.
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